UBS reports SwFr 1.4bn Q2 loss

by Gill Montia

Story link: UBS reports SwFr 1.4bn Q2 loss

UBS has reported a loss of SwFr 1.4 billion for the three months to the end of June, compared with a loss of SwFr 358 million a year earlier.

The result follows a loss of SwFr 2 billion in the first quarter of 2009, marking a slight improvement in the fortunes of the Swiss banking giant.

Outflows from its Global Asset Management division totalled SwFr 17.1 billion during the second quarter, which also saw a one-off charge of SwFr 2.3 billion, and the bank says it remains cautious about the near-term outlook.

UBS also remains under pressure to settle its differences with US authorities on the trail of tax evaders.

In June of last year, prosecutors began examining the possibility that UBS staff had helped up to 17,000 US nationals evade tax.

In November the bank admitted to having colluded in fraud, issuing an apology.

At the height of the financial crisis last year, UBS reached an agreement with the Swiss National Bank (SNB) to reduce its exposure by transferring $60 billion of illiquid securities and other balance sheet assets to a separate fund entity.

The fund was capitalised with a $54 billion loan from the SNB and $6 billion of equity capital provided by UBS.